Living City Initiative (LCI)

About this scheme

The Living City Initiative (LCI) is a tax incentive scheme for refurbishing or converting residential and commercial properties within designated Special Regeneration Areas in Cork, Dublin, Galway, Kilkenny, Limerick and Waterford. It offers three reliefs: Owner-Occupier Residential Relief (for those living in the property as their main residence, subject to a €5,000 minimum spend), Rented Residential Relief for landlords, and Commercial Relief for business premises. Owner-occupiers deduct qualifying costs from total income, with the exact rate and period depending on when the property was first occupied. Rented Residential and Commercial Relief instead work as capital allowances over 7 years, capped at €200,000 of relief per claim, and excluding property developers and connected persons. Qualifying costs cover direct refurbishment/conversion spend — materials, labour, fees, and fixtures forming part of the building's fabric — but not legal fees, other professional fees, or Stamp Duty. The scheme runs until 31 December 2027. Claims are made through myAccount (PAYE) or ROS/Form 11 (self-assessed), supported by a builder's cost breakdown and Letter of Certification.

Who can apply

• The property must be located within a Special Regeneration Area (SRA) in Cork, Dublin, Galway, Kilkenny, Limerick, or Waterford
• Three relief types are available — Owner-Occupier Residential Relief, Rented Residential (landlord) Relief, and Commercial Relief — each with its own conditions
• LCI runs from 5 May 2015 for Owner-Occupier Residential Relief and Commercial Relief, and from 1 January 2017 for Rented Residential Relief; the scheme ends on 31 December 2027, and only refurbishment/conversion work carried out before that date qualifies
• Owner-Occupier Residential Relief: claimant must be the owner-occupier using the property as their sole/main residence; landlords cannot claim this relief on rented properties; a minimum spend of €5,000 on refurbishment/conversion is required (no upper spending limit); extensions generally do not qualify unless built before 1915 or added to meet building regulations (e.g. a bathroom in a derelict house); relief is deducted from total income at 10% a year for 10 years if the property was first occupied before 1 January 2023, or 15% a year for 6 years plus 10% in year 7 (with unused relief carried forward within the window) if first occupied from 1 January 2023
• Rented Residential Relief and Commercial Relief: claimed as capital allowances over 7 years (15% per year for 6 years, 10% in year 7); no upper spending limit, but the maximum tax relief claimable is €200,000; property developers and 'connected persons' to a property developer cannot claim either of these two reliefs
• Only the direct costs of refurbishment/conversion work actually carried out during the qualifying period count — advance payments for materials or future work do not qualify

How to apply

1. 1Confirm the property is located in a Special Regeneration Area and carry out qualifying refurbishment or conversion work during the scheme's qualifying period (before 31 December 2027).
2. 2Get the percentage of total costs relating to the refurbishment/conversion from your builder or developer, along with a Letter of Certification confirming the property qualifies for relief under the scheme.
3. 3If you pay tax under PAYE, claim Owner-Occupier Residential Relief online through your Income Tax Return in myAccount, once the first year of relief has ended; the relief then appears in your Tax Credit Certificate for the remaining years. If you are self-assessed, or claiming Rented Residential or Commercial Relief, claim online through your Form 11 return via the Revenue Online Service (ROS) for each year the relief applies.